The Basics of Risk Management
If you can’t tell by the name of our page (Risk Management 24-7), managing risk is one of our passions. In its most simple terms, risk management is essentially the process of identifying and controlling risk. This process helps analyze the level of threat a particular risk may impose, how likely it is that this event will occur, what steps can be taken to eliminate or minimize the risk, and what resources are necessary to “rebuild”. Every individual and company should have a solid risk management plan that is specific to their needs.
Not every risk management plan is the same. For an individual this may consist of a life insurance policy, homeowner’s policy, auto policy, etc. to make sure they and their family are covered from their own set of risks. Risks may be different due to any number of variables: types of homes, location of homes, types of vehicles- the list goes on. Your best bet is to talk to your agent, review your policies and update them on any changes in your life, property or living situation.
Right now, we’re going to focus on risk management as it applies to businesses. Not unlike and individual’s risk management, each company’s needs and programs are different. Again, something like location, size or industry all impact the kinds of risk exposure a business has, but though each risk management plan may be different the steps to develop the plan all start the same.
Step 1: Risk Identification- identifying and examining the potential sources of losses.
Step 2: Risk Analysis- assessing the potential impact of the exposures an organization has.
Step 3: Risk Handling/ Control- taking action to minimize losses.
Step 4: Risk Handling/ Financing- acquiring funds at the least possible cost to pay for losses.
Step 5: Risk Administration- planning and risk management policy development, implementing the plan and monitoring progress.
A more in depth look at these steps will be available on YouTube soon!
For more information about finding the best risk management program for your company, click here!
The Seltzer Group, located in Eastern Pennsylvania, specializes in developing safety, workers compensation, human resources, claims, and risk financing programs. They are a proud member of the Keystone Insurers Group and are nationally recognized for their expertise in workers compensation solutions. The Seltzer Group serves businesses and individuals locally, regionally, and on the national level